Raleigh, N.C.–based Captrust Financial Advisors announced on Tuesday a minority investment by Carlyle.
Terms of the deal were not disclosed.
Founded in 1997, Captrust began an aggressive acquisition strategy in 2006 and has since completed nearly 70 deals. Three years ago, the firm announced it sold a 25% stake to private equity firm GTCR—based on a valuation of $1.25 billion—after completing 40 transactions and amassing around $390 billion in assets. Since that sale in 2020, Captrust has added 29 firms and its valuation has increased to over $3.7 billion.
In a statement, Jim Burr, head of global financial services at Carlyle, said Captrust “has the unique position of leveraging its size and scale to benefit not only clients but also to benefit the communities it serves.”
Neither GTCR nor any of Captrust’s executive leadership teams will be selling secondary shares as part of this latest transaction, according to the company. Fielding Miller, Captrust’s CEO, will continue to lead the firm and will remain the largest individual shareholder.
A global investment firm with about $385 billion of assets under management across five continents, Carlyle’s private equity division currently owns pieces of two international fintech firms but is re-entering the U.S. wealth management space with the deal.
“I think it’s another vote of confidence in the RIA model,” said DeVoe and Company Founder and CEO David DeVoe, pointing out that Carlyle invested in Boston Private Financial Holdings back in 2008. “You have one of the world's leading private equity firms re-entering the space and doing so with big investments. I think it’s great for Captrust.
“I think we'll probably continue to see more of this with interest rates,” he added. “In many cases, firms are seeking additional capital so that they don't bump up against debt covenants or some debt ratios. So, we'll probably see more of this with other firms.”
Captrust offers investment advice, financial planning, estate planning, tax advice and compliance services to individuals and families, as well as additional services to retirement plan sponsors, endowments, foundations and religious entities. The firm has nearly 1,500 employees across 85 locations nationwide. As of June 30, the firm oversees over $832 billion in assets, including just over $688 billion in nondiscretionary assets under advisement, and just over $143 billion in discretionary managed account assets.
Ardea Partners served as exclusive advisor to Captrust. Alston & Bird served as Captrust’s legal counsel. J.P. Morgan served as lead advisor to Carlyle. Simpson Thacher & Bartlett served as Carlyle's legal counsel. Kirkland & Ellis LLP served as legal advisor to GTCR.
Reporter Ali Hibbs contributed to this report.
